ACIT-2(1)(1), MUMBAI vs. THE BOMBAY DYEING AND MANUFACTURING COMPANY LTD., MUMBAI

Asst. Commissioner of Income Tax, 2(1)(1), Mumbai (the learned AO) against the appellate order passed by National Faceless Appeal Centre, Delhi [ the ld. CIT (A)] for A.Y. 2015-16 dated 28th March, 2023, wherein the appeal filed by the assessee against the assessment order passed on 31st October, 2021 by NFAC, Delhi under Section 143(3) read with section 263 of the Income-tax Act, 1961 (the Act) was allowed holding that when the tribunal has quashed the order passed under Section 263 of the Act, consequent order passed by the learned

Meanwhile, the learned Assessing Officer passed an assessment order pursuant to that direction under Section 263 of the Act on 31st October, 2021.

Such Assessment order was challenged before the learned CIT (A), who held that when the order under Section 263 of the Act itself has been quashed, consequential order passed by the learned Assessing Officer cannot exist and therefore, the learned CIT (A) allowed the appeal of the assessee. Now ld. Ao is in appeal before us against that appellate order.

After hearing the parties, we find no merit in the appeal of the learned Assessing Officer since the assessment order which was passed pursuant to order of the learned PCIT under Section 263 of the Act has already been quashed, therefore, subsequent order made on that basis cannot survive. It may be true that Revenue might have not accepted the decision of the co-ordinate Bench and has challenged it before the Hon'ble High Court. But that cannot go into the way of disposal of this appeal. Merely, because the Revenue has not accepted the decision of the co-ordinate Bench, without pointing out any material on record or submitting that Assessment order is sustainable, we are not inclined to upset the order of ld. CIT (A). We find no infirmity with the order of the learned CIT (A) in allowing the appeal of the assessee.